Could Ethereum (ETH) price go down after the Shanghai update? Understand
This risk, however, was taken into account by the Ethereum developers, who implemented daily ETH withdrawal limits in staking. According to the Ethereum Foundation website, a maximum of 16 withdrawals can be processed in a single block. At that rate, 115,200 validator withdrawals can be processed per day.
A report from analytics house Messari outlines that while the event could result in a large amount of withdrawals, it is unlikely that a mass sale will occur that could devalue ether. They point to three main reasons for this. 
The first reason is that, in the current state of the network, only 1,575 validators, or around 50,000 ETH, can leave the pool of active validators per day. Even if 20% of those validators left, that would be roughly equal to the estimated selling pressure the network was seeing from miners prior to the Merge.
A second reason is that around 70% of validators who staked ether did so between 2020 and 2021. This demonstrates a profile of long-term HODLers who analysts say are unlikely to be outright sellers.
The third reason why the company believes that a sell-off will not happen after the Shanghai update is that investors who think in the short term had the option of using services such as Lido, Rocket Pool, among others, which offer “net” staking. . This option gives investors the best of both worlds: they receive a share of the validator rewards for their staking ETH and also receive a token, redeemable for their staking assets, which can be traded or used as collateral while the ETH stays inaccessible on the Beacon Chain.
Finally, it is important to remember that the cryptocurrency market is volatile and unpredictable. So, while there are reasons to remain bullish, there is always a risk that the price of ether could fluctuate after the Shanghai update. You need to closely monitor market trends and make decisions based on careful analysis and well-defined strategies.
